Wall Street, loses, appeal, on, hot news, lawsuit,

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Wall Street loses appeal on hot news lawsuit, Reversing a lower court ruling, the 2nd U.S. Circuit Court of Appeals said Inc should not be punished for systematically republishing "hot news" on its website.

Monday's unanimous ruling by a three-judge panel is a defeat for Bank of America Corp's (BAC.N) Merrill Lynch unit, Barclays Plc (BARC.L) and Morgan Stanley (MS.N).

These banks said Theflyonthewall.com was getting a "free ride" on their research, costing them profits.

It is also a victory for investors who might otherwise have to wait longer to learn of market-moving news.

"A firm's ability to make news -- by issuing a recommendation that is likely to affect the market price of a security -- does not give rise to a right for it to control who breaks that news and how," Judge Robert Sack wrote for the appeals court.

The judge added that there was not enough evidence to suggest the activity interfered with the banks' ability to profit from buying and selling securities.

It is unclear whether the banks will appeal the ruling.

"We are disappointed in the Court's decision, and we are reviewing the decision to determine our next steps," said Benjamin Marks, a partner at Weil Gotshal & Manges representing the banks. He said the decision left intact a lower court determination that Theflyonthewall.com had infringed the banks' copyrights in equity research, and could not do so again.

Bank of America spokesman Bill Halldin, Barclays spokesman Seth Martin and Morgan Stanley spokeswoman Sandra Hernandez declined to comment.

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Wall Street loses appeal on "hot news" lawsuit INDIANOFS Wall Street, loses, appeal, on, hot news, lawsuit, | INDIANOFS